Niko Resources has received an independent resources evaluation report for the MJ Discovery in the D6 Block in India from Deloitte LLP

Deloitte’s best case estimate of gross unrisked contingent resources of 1.4 trillion cubic feet of equivalent (Tcfe) relates to the Central (North), Northern and Central (South) fault blocks that were drilled by the MJ‐1, MJ‐A1, and MJ‐A3 wells, based on an estimated areal extent of approximately 24 square kilometres, approximately twice the areal extent of the analogous MA field that is currently producing

“The discovery and successful appraisal of MJ adds a new and exciting chapter to the D6 Block. Going forward, the contractor group in the block will be working on plans to develop MJ, which may lead to potentially significant additions to reserves and production levels in the coming years,” said William T. Hornaday, chief operating officer, Niko Resources Ltd.

Deloitte has evaluated the contingent resources for the MJ Discovery in the D6 Block in India based on available information, including the drilling, testing and coring results of the MJ‐1 discovery well and the MJ‐A1, MJ‐A2, and MJ‐ A3 appraisal wells.

The drilling of MJ‐1, located in the Central (North) fault block, was completed in May 2013 in a water depth of 1,024 metres to a total depth of 4,509 metres to explore the prospectivity of a Mesozoic Synrift Clastic reservoir lying over 2,000 metres below the already producing reservoirs in the Dhirubhai 1 and 3 gas fields.

Formation evaluation indicates a gross gas and condensate column in the well of about 155 metres in the Mesozoic reservoirs. In a drill stem test, the well flowed 30.6 MMcf/d of natural gas and 2,121 b/d of liquids though a 36/64" choke, with a flowing bottom hole pressure of 8461 psia suggesting good flow potential. The well flow rate during the test was limited by the rig and well test equipment configuration.

The appraisal programme, which included three appraisal wells, has provided additional information on understanding the reservoir. The first appraisal well, MJ‐A1, in what is now designated as the Northern fault block, had encouraging results. No hydrocarbon bearing zone was encountered in the second appraisal well, MJ‐A2, in the Eastern segment of MJ discovery area. The third appraisal well, MJ‐A3, in the Central (South) fault block, encountered hydrocarbons at the zone of interest, with the zone thinner than expected.

Deloitte’s best case estimate of gross unrisked contingent resources of 1.4 trillion cubic feet of equivalent (Tcfe) relates to the Central (North), Northern and Central (South) fault blocks that were drilled by the MJ‐1, MJ‐A1, and MJ‐A3 wells, based on an estimated areal extent of approximately 24 square kilometres, approximately twice the areal extent of the analogous MA field that is currently producing.